Large CapTechnology

ZS — Zscaler, Inc.

Cybersecurity — Zero Trust · Founded 2008 · San Jose, California · CEO: Jay Chaudhry

Zscaler provides a cloud-based zero-trust security platform that secures user-to-application and application-to-application connections. The Zero Trust Exchange processes hundreds of billions of transactions daily, replacing traditional VPNs and firewalls with cloud-native security.

How Zscaler, Inc. Makes Money

Subscription revenue — Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA)

Zscaler Digital Experience (ZDX) — performance monitoring

Data protection and cloud security modules

Professional services and support

Key Metrics Investors Watch

Annual recurring revenue (ARR) growth
Billings growth
Net retention rate
Customers spending $1M+ annually
Free cash flow margin

Competitive Advantages

Pioneer and leader in cloud-based zero-trust security architecture
Massive cloud — processing hundreds of billions of daily transactions provides AI/ML threat detection advantages
Replacing legacy VPNs and firewalls with a fundamentally better security architecture
Large enterprise customer base with high switching costs once deployed

Key Risks

Competition from Palo Alto Networks, Netskope, and Cloudflare in SSE/SASE
Premium valuation requires sustained high growth
Enterprise security budget compression during economic uncertainty
Founder-CEO Jay Chaudhry controls significant voting power

Dividend & Capital Return

Zscaler does not pay a dividend. The company is focused on growth investment.

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Frequently Asked Questions

Is Zscaler stock a good investment?

Zscaler is the leader in zero-trust cloud security, benefiting from the secular shift away from legacy VPNs and firewalls. The stock carries a premium growth valuation. This is educational content, not financial advice.

How does Zscaler make money?

Zscaler generates subscription revenue from its zero-trust security platform, which replaces traditional network security appliances with cloud-based security for remote and hybrid workforces.

What is zero-trust security?

Zero trust is a security model where no user or device is automatically trusted, even if they're inside the corporate network. Every connection is verified, authenticated, and inspected. Zscaler's platform implements this architecture in the cloud.

Does Zscaler pay a dividend?

No, Zscaler does not pay a dividend. The company reinvests in product development and sales expansion.

Is Zscaler replacing VPNs?

Yes, Zscaler's core value proposition is replacing traditional VPNs with zero-trust cloud security. VPNs grant broad network access once connected, while Zscaler provides granular, application-level access with continuous verification.

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Company information is based on publicly available disclosures and widely-known business facts. No specific price, earnings, or real-time market data is included. This is educational content — not investment advice.